St. Paul daily globe., 1887-03-26
Place of Observation.
Below zero. slower. Higher.
REAL ESTATE SPECULATION.

The activity in real estate speculation is
not confined to the Northwest. 1t is active
enough in this section for all reasonable
purposes. but it seems to be equally ac
in other localities. In fact there is an
almost universal real estate boom through
ont the entire country. East and West,
North and South, from every direction,
comes the same story of advancing prices in
real estate Naturally we feel inclined to
stop and inquire into the causes of this
phenomenal activity. 1t does not have It's
origin in that feverish spirit of speculation
which seiZes communities every now and
then. or else it would be more local in its
character The fact that it is so universal
gees to show that there is a we'll defined
cause for it, and that cause lies i'm the
plain practical business principle that
money will seek investment where it is
safest to invest. Real estate is the safest
security that is offered to the investor, and
that is why so much capital is being salted
down in that manner. The passage of the
interstate commerce bill has had an un-
mistakable tendency to check railway
speculation. The opportunities for water
ing stock and the thousand and one other
devices Of railway manipulators to make
large fortunes out of small investments are
past. There is no more future for the
railway speculator. The determination
manifested by the people to put and keep
the corporations under government control
has pretty effectually eliminated that un-
healthy form Of speculation from the busi-
ness of the country. In glancing over the
field the capitalist sees but one real secure
form of investment. 1t is real estate.
There is something that nothing short of all
earthquake can disturb. Interstate COM
real estate from an absolute control of his
property. 1t may not pay as big dividends
as railway and mining stocks, but its value
is in no wise affected by state and national
legislation. Commerce may fail, mines
may close, banks may suspend, the spindle
and the loom may stop work,
but the earth remains. The money
invested in real estate is planted
in solid ground which is immovable.
1t is easy to understand why. in the uncer-
tain conditions of commercial life at this
time, capital should seek a safe resting
place until the clouds have rolled by, and
its owners can see more clearly into the
future Up to this time the activity in the
real estate market is confined principally 70
the cities and towns. Later on it will eX.
tend into the rural sections, where its ben
efits will be most perceptible. Whenever
capital is devoted to the development of the
agricultural interests the country is then
getting down to basis of permanent pros-
pcrity. Agriculture is the foundation upon
which all other industries rest. Capital
cannot go astray when it is invested in real
estate. and it becomes positive national
benefit when it is engaged in opening uI
the agricultural resources of a country. Sc
that the croakers who predict that the pres
ent boom in real estate is menace to the
business of the country do not know what
they are talking. 1t is the healthiest form
that speculation has taken for many long
day.